Buyer's Process
Below is an ordered list of things you will need to do in order to prepare for buying a new home.
Loan Application
Whether borrowing from your local bank or using a mortgage broker, getting situated with your financing is an important first step towards purchasing property. In fact, in today’s market most sellers will request that a loan pre-approval letter accompany all offers. By meeting with a loan officer first you will be able to determine exactly what your costs will be and most importantly, what you should or should not spend. Meet with at least two lenders to determine which will best suit your needs. An experienced realtor can be a good source for a referral in this matter.
Criteria selection
What are you looking for in your new home or investment? Location should be your first concern. How many bedrooms and bathrooms do you need? Do you need access to a train for work? Make a list of all the factors that influence where you need to live.
Realtor selection
By working with someone who buys and sells real estate on a daily basis you can use their experience to minimize the risk involved in purchasing property. The best part is that working with a buyer’s representative is free. Buyer’s agents are paid by the seller at the end of a successful transaction. A common misconception is that buyers will be able to “get a better deal” by not using a designated buyers agent.
Showings
Your buyer’s agent will have a firm grasp on what is available in the marketplace to best suit your needs. Once he has reviewed your criteria he will present you with listing sheets for homes that are currently on the market. Next, you should discuss your schedule and work out a time when viewing homes is best for you. Your realtor will then schedule showings of homes which match your criteria.
Contract
Once you have found the property which suits your needs it is time to discuss making an offer. By looking closely at the market your realtor will be able to determine a fair market value for the property you intend on purchasing. Once you have determined a price your agent will prepare a contract to purchase the property.
Attorney Approval
Once you and the sellers have come to an agreement your contract will enter into the attorney review period. At this point both attorneys will work to remedy any conflicts and approve or reject the contract with their clients best interests in mind. It is highly recommended that you use an attorney whenever you are buying or selling real estate.
Inspection
Typically, inspections should be performed within the attorney approval
period. If the inspection should determine that there are major
faults or defects with the property the attorney can then either
cancel or renegotiate the purchase for his client. Your realtor
will be able to suggest several licensed and qualified inspectors
depending on your needs.
Helpful Information
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